Progress Residential Discusses Unlocking Economic Mobility with the Power of Positive Rent Reporting

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Progress Residential Discusses Unlocking Economic Mobility with the Power of Positive Rent Reporting

Based in Scottsdale, Arizona, Progress Residential is a leading provider of property management services for single-family rental homes in the U.S.

With a commitment to providing its residents with beneficial services and tools, Progress realizes rent payments should represent more than just a monthly expenditure. Instead, Progress knows that rent payments can provide a valuable, significant steppingstone toward a bright financial future. Furthermore, it’s what renters want. According to the U.S. Census Bureau, a third of Americans rent their home. That’s more than 45.2 million people. And according to a 2023 poll by Fannie Mae, an overwhelming majority (80%) of renters want on-time rent payments to be factored into their credit scores.

In 2022, the Progress Residential team was the first in the industry to launch a suite of free financial tools for its residents—including a positive rent reporting program, opening an opportunity for residents to build positive credit while renting, setting them up for future success.

But what is positive rent reporting? And how are positive rent reporting tools unlocking a new era of economic mobility for thousands of renters? Read on for a closer look at the topic, courtesy of Progress Residential.

Positive Rent Reporting: What Is It?

On-time, in-full rent payments are reported to three main credit bureaus: Experian, Equifax, and TransUnion. It is widely believed that rent payments can be reported because leasing an apartment or home is technically a legal agreement – similar to incurred debt – which makes payments toward that lease similar to making payments against a loan. Once submitted, these reports help create positive, reliable payment histories for individuals and families renting their homes.

In turn, these histories help to build solid credit scores, opening a world of future financial possibilities for today's renters. It's a simple but highly effective concept. Progress Residential proudly stands at the forefront of the positive rent reporting movement by offering free reporting to its residents.

Impact of Positive Rent Reporting on Residents

Positive rent reporting can be a gateway to establishing a credit score for those without a documented credit history. Achieving a favorable credit score for the first time provides greater access to numerous vital services, including credit cards and loans. By the end of February 2024, Progress Residential helped more than 8,300 renters gain credit scores for the first time.

With that, these individuals and families successfully transitioned from being what's known as “credit invisible” to having active credit. This move to credit active status has helped to successfully pave the way toward a more secure financial future for an ever-growing number of the program's participants.

Resulting perks range from lower interest rates to the potential to access prime—rather than subprime—credit. Across the board, tangible financial benefits can include, but are not limited to:

  • Reduced overall interest rates, allowing individuals to save money when borrowing in the future
  • Larger future borrowing power, opening up opportunities to borrow more and make larger purchases down the line.
  • Reductions in interest rates, lowering interest payments while making it easier to pay off home and auto loans for years down the road.

Positive Rent Reporting's Economic Impact

Effective positive rent reporting doesn't just benefit individuals and their families – it also has a potentially much broader and far-reaching economic impact. That's because when people thrive, their communities flourish as well. Progress Residential knows that positive rent reporting extends far beyond single-family rental homes.

The improved credit scores facilitated by positive rent reporting programs offered by property management companies like Progress Residential help to advance financial mobility for thousands of renting individuals and families. This financial mobility can translate into more profitable local businesses, prospering neighborhoods, and more. Overall, positive rent reporting not only creates an opportunity for individual financial health, but can also strengthen the broader economy by enhancing credit access, fostering stability in the housing market, and promoting socioeconomic equity.

For Progress Residential, a positive rent reporting program represents an investment in the future of local communities designed to foster financial independence and upward mobility for everyone.

To learn more about positive rent reporting, sources such as https://www.huduser.gov/ can be a great place to start your research.

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